FAS RUSSIA DETECTED COLLUSION FOR 1.5 BILLION RUBLES IN THE COAL SUPPLY MARKET

The Commission of the FAS Russia recognized PJSC TGC-2, JSC Arhoblenergo and LLC TEC as violating the antimonopoly legislation¹. The companies restricted competition by entering into agreements with each other and creating preferential conditions for LLC TEC at the auction

It should be reminded that the FAS Russia initiated a case on violation of Antimonopoly legislation¹ when conducting purchases for the supply of coal for the needs of thermal power plants located in the Arkhangelsk, Novgorod and Yaroslavl regions.

Based on the results of unscheduled inspections, as well as a comprehensive and complete analysis of the circumstances of purchases for the supply of coal in 2017-2018 in these regions, the FAS Russia revealed signs of conclusion of agreements restricting competition between the bidders and their participants by PJSC TGC-2, JSC Arhoblenergo and LLC TEC.

The purpose of the agreements was to maintain prices at auctions for the supply of coal for heat and power companies, as well as to create preferential conditions for participation in the auction for LLC TEC, which has signs of affiliation with the bidders. The total amount of contracts is more than 1.5 billion rubles.

“Unfortunately, such collusions and violations have a negative social effect – when prices for the supply of coal are inflated, the cost of heat and power companies can be included in the tariff paid as a result by consumers, ordinary citizens. Therefore, the FAS pays great attention to identifying and suppressing such agreements in such socially important spheres. Companies will be imposed multimillion-dollar turnover fines,” said Andrey Tsarikovskiy, Stats-Secretary – Deputy Head of the FAS Russia.

“This case is one of the stages of the Antimonopoly Authority’s systematic work to identify anti-competitive agreements in regulated spheres. We pay special attention to heat and power supply in the Far North and Far East. I believe that the punishment should be appropriate – we will send the case materials to law enforcement agencies, as we see signs of violation of criminal law in the actions of the companies,” added Andrey Tenishev, Head of the Anti-Cartel Department of the FAS Russia.

¹ Paragparh 1 of the Part 1 of the Article 17 of the Law on Protection of Competition